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Dvinal [7]
3 years ago
10

the value of a machine depreciates at the rate of 20% p. a. compound depreciation find the total compound depreciation after 3 y

rs if the present value is Rs. 175000​
Business
1 answer:
Stella [2.4K]3 years ago
7 0

Answer:

R 85400

Explanation:

The amount of depreciation will be the current amount minus the amount after three years.

amount after threes is calculated as follow

A= P x( 1+ r) ^n

Wheres A: amount after 3 years

P : principal amount =r 175,000; r = -20%, n is number of period

A = 175,000 x ( 1- 0.2)^3

A =175,000 x(0.8)^3

A = 175,000 x 0.512

A=89,600

Depreciation =175,000 - 89,600

=R 85400

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Answer: The answer is central bank

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Loan fund to the banking system: This is a function of central bank when they act as lenders of last resort to the commercial bank. If people begins to withdraw their money from commercial banks, the banks may be placed in such a position that they will not have enough cash to pay their customers. They will run to the central bank to borrow money or to rediscount bills and the central bank must not refuse to come to the aid of commercial banks in order to prevent banking crisis which may shake a country's economy.

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Create money out of thin air: This is the central bank function of issuing notes, it is the legal authority to issue notes. When new notes are to be put into circulation, this is done by the central bank .but the new notes are set into circulation through the commercial banks.

Control the money supply : This is the function of central bank to regulate the volume of money in circulation or to mop up excess liquidity in the economy by selling treasury bill through the open market to the members of the public .It collect money from the commercial banks this will reduce the cash reserves of commercial banks and reduce their loan given capacity.

Government bonds, the money supply : The central bank is the legal authority to sell government bonds in order to mop up the excess liquidity in the economy. When their is too much money in circulation, the central bank make use of monetary policy instruments such as the open market operation to reduce the supply of money in circulation.

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Ulleksa [173]

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HACTEHA [7]

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